23 Sep 2021
Practical Ways to Win Over Millennial Clients
Every generation looks at life insurance differently as a result of its unique life experiences. This is certainly the case with Millennials—i.e., those between the ages of 24 and 41.
Until recently, many Millennials resisted the call to purchase individual life insurance. However, this has recently changed. The better you understand the Millennial mindset, the more effectively you can connect with this increasingly-attractive market. What led to this sea change, and what does it take to connect with 20 and 30 somethings?
The Gamechanger for Millennials: COVID-19
Prior to the pandemic, Millennials were notoriously reluctant life insurance prospects. According to a study published by IBM in March, 2020—just before the pandemic came into focus—noted that Millennials purchased fewer policies than other generations. And that when they did buy them, their benefits were notably smaller.
The survey found that, in addition to financial constraints, Millennials were put off by their lack of product understanding, as well as the time and paperwork involved.
Then, COVID-19 changed everything.
While the pandemic has led to a greater appreciation of life insurance all generations, Millennials have been the hardest hit. According to LIMRA and Life Happens’ 2021 Insurance Barometer Study, 45% of Millennials are more likely to buy life insurance now than they were pre-pandemic, compared to 31% of Gen X consumers.
The study also revealed that Millennials are ones the most concerned about leaving their family without financial resources. That makes perfect sense—considering that getting married, having kids, and buying a home have always prompted life insurance purchases, and right now, that’s where many Millennials are.
Understanding the Millennial Mindset
To market successfully to Millennials, you also need to understand their priorities and circumstances. While everyone is unique, research indicates that many Millennials share these characteristics.
Millennials are Job Hoppers
According to Gallup research, Millennials are likely to switch jobs fairly frequently. Even if their employers offer life insurance benefits—and many don’t—coverage often isn’t portable and probably isn’t enough. (According to one survey, Millennials who do have life insurance only have about one-fifth of their self-reported coverage needs.)
Millennials Are Behind in Retirement Savings
A full 66% of working Millennials have no retirement savings, according to The National Institute on Retirement Security. In many cases, they are still paying down student loans and feel they have little left to invest.
Millennials Love Conducting Business Online
Not only are Millennials digitally-savvy, they often prefer online research to in-person discussions. In fact, a survey conducted by Liberty Mutual and Safeco Insurance found that seven out of 10 Millennials believed they could do everything their property casualty agent did on their own. Many preferred a “hybrid experience” of supplementing their agents’ recommendations with online research.
Millennials Are Smart—and Impatient
According to Gallup, Millennials are the most educated generation to date. However, they are also zealous about saving time and money. They prize speed and efficiency and don’t have the patience for slow, drawn-out processes.
Millennials Love Choice and Personalization
When Millennials make a purchase, they want it customized to their personal preference. They value having options, even when it makes their decision-making more complicated.
Millennials Believe in Corporate Responsibility
Millennials are big believers in corporate social responsibility, business ethics, eco-friendliness and equality—and like to do business with companies that can demonstrate that they these values.
7 Strategies for Winning Over Millennial Clients
Put it all together, and the key to working successfully with Millennial clients may be to adapt your style to theirs. Specifically:
- Be ready to conduct business digitally, via video calls, emails and electronic forms. Make it as fast and easy as possible for them to do business with you.
- Provide value to your clients by educating them on policy benefits and options. Underscore that whole life policies will both protect their loved one’s future and help save for retirement—sweet spots for this generation.
- Assume your clients will conduct their own online research. Be ready to answer tough questions and explain the competitive advantages of the plans you propose.
- Listen carefully to what your clients want. Be ready to offer alternatives and to tweak your proposals as you learn more about your clients.
- Stress that you’re committed to helping your clients get the best coverage for their dollars. Emphasize how their relative youth and good health helps keep premiums down.
- Be prepared to demonstrate your expertise and commitment to providing excellent service. Show them the value of having a personal advisor.
- Make social responsibility part of the conversation. If you’re active in your community, let them know how you give back. Tell them about PALIG’s charitable initiatives. After all, giving is a big part of who we are, and this is likely to resonate.
In summary, there has never been a better time to reach the Millennial market. Take the time to understand their point of view, and you’ll be more successful in converting these coveted prospects to valued clients.